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Office of the New York State Attorney GeneralenA.G. Schneiderman Secures Agreement With Hempstead Union Free School District To Ensure Equal Educational Opportunities For Students Regardless Of Immigration Statushttp://www.ag.ny.gov/press-release/ag-schneiderman-secures-agreement-hempstead-union-free-school-district-ensure-equal
<div class="field field-name-field-summary field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"><p>Agreement Removes Barriers Impacting Unaccompanied Minors And Other Undocumented Youth Seeking To Enroll In The District</p>
<p>District Will Be Required To Appoint A Special Monitor And Provide Academic Services To Students Who Have Been Unable To Enroll This School Year</p>
<p>Schneiderman: We Will Continue To Work With School Districts Statewide To Ensure That Every Child Is Treated Equally</p>
</div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p>NEW YORK – Attorney General Eric T. Schneiderman today announced an agreement with the Hempstead Union Free School District to ensure educational access for students regardless of their immigration status. Among other things, the district agreed to retain an ombudsman who will provide new internal oversight over enrollment policies within the district, to retain an independent monitor to ensure that the district enrolls students in compliance with the law, and to offer compensatory educational services to students who experienced enrollment delays for the 2014-15 school year.</p>
<p>“Education is the bedrock of our American democracy, and every child in our nation – no matter where they were born – deserves the chance to attend school,” said <strong>Attorney General Schneiderman.</strong> “I am pleased that Hempstead School District has agreed to come into compliance with the law and that it will also provide additional services to any student who was, until now, unable to enroll in their local school. We will continue to work with school districts statewide to ensure that every child is treated equally and has full access to the tools needed to become productive members of society.”</p>
<p>In October 2014, the Attorney General received complaints from community members and information detailing the situation of approximately 33 Hispanic students – many of them recent immigrants – who were instructed by district administrators to sign in for school each day and return home because there were not enough classrooms to accommodate those students. In response, the Attorney General and the New York State Education Department (SED) launched a joint review of enrollment policies and procedures of school districts in Nassau, Suffolk, Westchester, and Rockland Counties, including the district – counties that had experienced a significant influx of unaccompanied minors from Central and South America – in order to determine whether those districts were impermissibly discriminating against students or prospective students on the basis of immigration status.</p>
<p>Following the joint review with SED, the Attorney General opened a formal investigation into the district. The investigation found that, beginning in the summer of 2014 and continuing through February 2015, the district denied or delayed the enrollment of dozens of students who sought to enroll, many of whom are unaccompanied minors originating from Central and South America, and many of whom who were not U.S. citizens at the time they sought to enroll. The district delayed the enrollment of these students through a variety of methods, including overly-restrictive policies on proof of immunization, age, and residency – in violation of applicable laws and regulations – as well as regularly telling students and/or their guardians there was simply no room at district schools for them. With respect to the last method, the district maintained a “wait list” of more than sixty students, and as of February 2015 students on the list were still awaiting enrollment with the district.</p>
<p>On February 17, 2015, in response to learning of this wait list, SED issued an order to the district requiring it to, among other things, immediately enroll all students awaiting enrollment and provide monthly affidavits of compliance to SED from the district’s superintendent and board president.</p>
<p>The Attorney General’s investigation confirmed that the district’s policies and actions were inconsistent with the U.S. Supreme Court’s holding in Plyer v. Doe – which held that the U.S. Constitution guarantees equal protection for undocumented children – and was likely to, or could potentially, chill or discourage undocumented students from enrolling in the districts.</p>
<p>The agreement entered into between the Attorney General and the district requires the district to do the following:</p>
<ul><li>Modify district enrollment materials and policies to conform to the proof requirements of applicable state law and regulations, including avoiding inquiries into citizenship/immigration status;</li>
<li>Develop new enrollment procedures governing the activity of district personnel responsible for enrollment;</li>
<li>Develop training materials addressing permissible and impermissible inquiries in the enrollment process, including acceptable forms of proof of age and residency, as well as annual training for relevant district personnel; </li>
<li>Hire or designate a new enrollment ombudsman responsible for enrollment throughout the district;</li>
<li>Retain an independent monitor to assure compliance with applicable law and the agreement;</li>
<li>Provide compensatory educational services to students who were delayed or denied enrollment for the 2014-15 school year; and </li>
<li>Maintain records of district denials of student enrollment, and regularly report to the Attorney General concerning such denials, until June 2018.</li>
</ul><p>Hempstead Union Free School District joins <a href="/press-release/ag-schneiderman-secures-agreements-twenty-school-districts-ensure-equal-educational" target="_blank" title="20 School Districts">20 other school districts</a> across New York State that have entered into agreements with the Attorney General’s Civil Rights Bureau to ensure that all students are able to enroll in public school regardless of immigration status.</p>
<p><strong>Jason Starr,Nassau County Chapter Director of the New York Civil Liberties Union,</strong>said, “Hempstead is becoming an increasingly diverse school district and it’s important that schools are equally open and accessible to all young people regardless of their background or immigration status. We thank the Attorney General’s Civil Rights Bureau for its work to promote equal educational opportunity.”</p>
<p>"This is a step in the right direction for the Hempstead Union Free School District," said <strong>Lucia Gomez, Executive Director of La Fuente,</strong> an advocacy organization working to empower immigrants in the Village of Hempstead. "There is no possible rationale for why anyone would choose to violate a fundamental right under our democracy such as the right to an education. Immigration status cannot be a pretext for providing less of an opportunity for any child. We applaud the Attorney General Schneiderman for his consistent commitment to ensuring equal justice under the law for all New Yorkers."</p>
<p><strong>Mario Russell, director of the Immigrant and Refugee Services Division for Catholic Charities Community Services in New York,</strong>said, “So many of the unaccompanied minors in New York are children who have suffered trauma, either in their home countries or en route to the United States. We need to ensure that these young people receive the care they need and, most importantly, ensure that they are enrolled in school. I thank the Attorney General’s Office for taking steps to eliminate one of the most significant barriers that unaccompanied minors face.”</p>
<p>This matter is being handled by Assistant Attorneys General Justin Deabler and Ajay Saini of the Civil Rights Bureau, with the assistance of bureau support staff. The Civil Rights Bureau is led by Bureau Chief Kristen Clarke. The Bureau is part of the Division of Social Justice, which is led by Executive Deputy Attorney General for Social Justice Alvin Bragg.</p>
</div></div></div><div class="field field-name-group-audience field-type-group field-label-above"><div class="field-label">Groups audience:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/bureau/civil-rights">Civil Rights</a></div><div class="field-item odd"><a href="/nassau-regional-office">Nassau Regional Office</a></div></div></div>Tue, 03 Mar 2015 16:21:51 +0000Revathi37997 at http://www.ag.ny.govhttp://www.ag.ny.gov/press-release/ag-schneiderman-secures-agreement-hempstead-union-free-school-district-ensure-equal#commentsA.G. Schneiderman Announces Over $13.5 Million Recovered For Individuals Through Consumer Assistance Program Since 2011http://www.ag.ny.gov/press-release/ag-schneiderman-announces-over-135-million-recovered-individuals-through-consumer
<div class="field field-name-field-summary field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"><p>New Report Highlights Consumer Frauds And Internet Bureaus Helping Over 17,000 Individuals Resolve Complaints</p>
</div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p>NEW YORK – Attorney General Eric T. Schneiderman today announced that since January 2011, his office has helped over 17,000 people successfully resolve their consumer complaints. This includes recovering over $13.5 million in refunds and other relief for over 12,000 of these consumers through his agency’s Consumer Assistance Program. These figures were released as part of a new report –<em> <a href="/pdfs/Consumer_Frauds_Report.pdf" target="_blank" title="Report">Fighting Fraud in New York: One Consumer at a Time</a></em> – that highlights the office’s efforts to recover funds for individual consumers. The report, released to coincide with national Consumer Protection Week, also indicates that the program has resulted in an average per complaint recovery of $1,107. This is in addition to the litigation and other enforcement actions that have resulted in a record of over $1.8 billion in consumer relief obtained by the Consumer Frauds Bureau since 2011. </p>
<p>“Every year, my office receives thousands of complaints from consumers across New York State and the country who believe they have been scammed or defrauded, and we take every complaint seriously,” said <strong>Attorney General Schneiderman.</strong> “As today’s report shows, my office has obtained over $13.5 million in in refunds and other relief for over 17,000 consumers since 2011. I would encourage any New Yorker who believes they have been scammed to file a complaint with my office and to see how we can help.”</p>
<p>The report indicates that Attorney General Schneiderman’s Office receives thousands of consumer complaints each year from every corner of the state. Complaints, spanning a range of industries and categories, have varied from seniors being scammed on loan modification services to threatening and illegal debt collection practices. This year, the areas that have generated the most emails, calls, and letters to the office include:</p>
<ul><li>Automobile industry: 2,986</li>
<li>Credit and Identity Theft: 2,224</li>
<li>Service Industries: 2,146</li>
<li>Utilities: 1,778</li>
<li>Landlord/Tenant: 1,721</li>
</ul><p>While consumer complaints have been received from every part of the state, the top five regions for consumer recoveries are:</p>
<ul><li>New York City: $3.57 million</li>
<li>Hudson Valley: $2.56 million</li>
<li>Western New York: $1.86 million</li>
<li>Long Island: $1.38 million</li>
<li>Capital Region: $1.32 million</li>
</ul><p>The internet has fundamentally changed how consumers do business, providing them with a level of convenience and access once unimaginable. However, the internet has also made it easier for scammers to gain an upper hand. With 5,524 submissions in 2014, the Attorney General’s Internet Bureau saw a 21% uptick in consumer tips and complaints from 2013, many of which were related to scams. The office has issued two recent consumer alerts around trending internet scams. One is a <a href="/press-release/ag-schneiderman-warns-consumers-against-scammer-posing-official-attorney-general%E2%80%99s" target="_blank" title="Debt Collection Scam">fake court appearance and debt collection notice scam</a> where scammers issue realistic-looking notices to appear in court or attempt to collect on a bogus debt – sometimes even claiming to be from the New York Attorney General’s Office. This scam has involved phony emails, phone calls, and letters sent through traditional mail. A second is a <a href="/press-release/ag-schneiderman-issues-consumer-alert-warning-new-yorkers-microsoft-technical-support" target="_blank" title="Tech Support Scam">fake tech support scam</a> where fraudsters email or call unsuspecting consumers, posing as technical support, claiming that they’ve identified malware or viruses running on your personal computer. These scammers are attempting to gain access and control of users’ computers.</p>
<p>The Attorney General’s Office has also focused on helping consumers by aiding struggling homeowners in the aftermath of the foreclosure crisis that started in 2008. Numerous consumers have reported unscrupulous companies and individuals aggressively targeting them with advertisements misrepresenting the company’s ability to help homeowners at risk of foreclosure. To help combat these companies, who often collect thousands of dollars in up-front fees but fail to provide the promised help, Attorney General Schneiderman has undertaken several initiatives that have helped consumers:</p>
<ul><li><a href="/press-release/ag-schneiderman-launches-new-web-based-app-help-new-york-homeowners-avoid-foreclosure" target="_blank" title="AGScamHelp">AGScamHelp</a> is a web-based application to help homeowners determine whether a company has been vetted by a government agency, and helps homeowners work with a qualified agency to avoid foreclosure;</li>
<li>The <a href="http://www.aghomehelp.com" target="_blank" title="HOPP">Homeowner Protection Program (HOPP)</a>, is a network of legal services and housing counselors funded by $60 million from settlements with the nation’s largest banks. Since it was launched in 2012, HOPP has provided assistance to 38,000 families statewide;</li>
<li>Between 2012 and 2014, the Attorney General’s escalation attorney team successfully resolved 244 mortgage modification complaints, including securing mortgage modifications for many consumers. The Consumer Assistance Program successfully mediated 91 complaints against foreclosure rescue companies. Many of these consumers were facing what seemed to be hopeless situations. The Consumer Frauds Bureau also obtained court judgments totaling $15 million against two loan modification companies.</li>
</ul><p>The Consumer Frauds and Internet Bureaus exist to help consumers who have fallen victim to scams, but there are some tips consumers can follow to help avoid becoming a victim:</p>
<ul><li>Take your time! Don’t rush into making purchases or investment decisions.</li>
<li>Always carefully read through a contract or terms of service – pay close attention to the fine print!</li>
<li>Resist high pressure sales tactics. If something sounds too good to be true, it probably is.</li>
<li>Beware of unsolicited phone and email offers – don’t be afraid to hang up on telemarketers who are rude or pushy.</li>
<li>Use care when giving out personal information such as bank account or Social Security numbers – never give that information to people you don’t know.</li>
<li>Get written estimates.</li>
<li>Ask about refund policies and warranties before you buy.</li>
<li>Prepare a list of questions in advance when considering a major purchase.</li>
<li>Call the Better Business Bureau to find out about a firm’s track record.</li>
<li>Create strong passwords with at least eight characters, incorporating numbers, capital letters and symbols, and which do not contain any variation of your name. Passwords should be changed often and never repeated or used across accounts.</li>
</ul><p> The full report can be viewed online <a href="/pdfs/Consumer_Frauds_Report.pdf" target="_blank" title="Report">here</a>.</p>
<p>Consumers who believe they have been the target of a scam or have been mistreated in the marketplace may file a complaint with the Attorney General’s Office online by visiting <a href="http://www.ag.ny.gov/">www.ag.ny.gov</a> or by calling the Consumer Helpline at 1-800-771-7755.</p>
</div></div></div><div class="field field-name-group-audience field-type-group field-label-above"><div class="field-label">Groups audience:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/bureau/consumer-frauds-bureau">Consumer Frauds and Protection Bureau</a></div><div class="field-item odd"><a href="/bureau/internet-bureau">Internet Bureau</a></div></div></div><ul class="links inline"><li class="translation_es first last"><a href="/node/37995" title="Schneiderman Anuncia Más De $ 13.5 Millones Recuperados Para Personas A Través Del Programa De Asistencia Al Consumidor Desde 2011" class="translation-link">Español</a></li>
</ul>Mon, 02 Mar 2015 14:16:02 +0000Revathi37994 at http://www.ag.ny.govhttp://www.ag.ny.gov/press-release/ag-schneiderman-announces-over-135-million-recovered-individuals-through-consumer#commentsA.G. Schneiderman And I.G. Scott Announce Sentencing Of Oral Surgeon Who Stole Over $14,000 From New York Statehttp://www.ag.ny.gov/press-release/ag-schneiderman-and-ig-scott-announce-sentencing-oral-surgeon-who-stole-over-14000-new
<div class="field field-name-field-summary field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"><p>Dr. Timothy O’Keefe Sentenced To Six Months In Jail And Required To Pay Restitution For Billing The State For Work He Did Not Perform While Treating Inmates At Correctional Facilities Across The State</p>
</div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p>ALBANY – Attorney General Eric T. Schneiderman and Inspector General Catherine Leahy-Scott today announced the sentencing of Dr. Timothy J. O'Keefe, an oral surgeon who contracted with the Department Of Corrections And Community Supervision (DOCCS) to provide specialty dental care for inmates at 26 correctional facilities in upstate New York. Investigators determined that O’Keefe repeatedly billed DOCCS for surgical procedures he did not perform. O’Keefe pleaded guilty to Offering a False Instrument for Filing in the Second Degree and was sentenced today in Albany County Court by the Honorable Peter A. Lynch to six months incarceration and is required to pay $14,640 in restitution.</p>
<p> “Contractors who overbill the state for services they do not perform are stealing from taxpayers and wasting precious resources that could be used for legitimate purposes,” said <strong>Attorney General Schneiderman.</strong> “My office is committed to protecting taxpayers from waste and abuse and today’s sentencing makes it clear that those who steal from the state will face consequences, including jail time.”</p>
<p>“This individual tried to exploit the system, developing a scheme to inflate his income by making false claims about the work he performed,” said <strong>Inspector General Scott.</strong> “As a result of this investigation he is returning taxpayer dollars to the state and will be serving time in prison as a consequence of his actions.”</p>
<p>O’Keefe admitted that, from in or around August 2009 to in or around April 2011, he submitted false invoices to DOCCS, over-billing the State by ‘upcoding,’ i.e. billing surgical extractions (a simpler procedure reimbursing at a lower rate) as bony impactions (a more complicated procedure reimbursed at a higher rate). In addition to jail time and restitution, O’Keefe is also required to participate in any program and/or monitoring recommended by the New York State Department of Education’s Office of the Professions.</p>
<p> The defendant is known to have performed dental work at the following correctional facilities:</p>
<ul><li>Albion </li>
<li>Orleans</li>
<li>Attica</li>
<li>Wyoming</li>
<li>Collins</li>
<li>Gowanda</li>
<li>Lakeview</li>
<li>Livingston</li>
<li>Groveland</li>
<li>Butler</li>
<li>Five Points</li>
<li>Cayuga</li>
<li>Elmira</li>
<li>Southport</li>
<li>Ogdensburg</li>
<li>Riverview</li>
<li>Gouverneur</li>
<li>Watertown</li>
<li>Cape Vincent</li>
<li>Upstate</li>
<li>Bare Hill</li>
<li>Franklin</li>
<li>Chateaugay</li>
<li>Altona</li>
<li>Clinton</li>
<li>Adirondack</li>
</ul><p>The Attorney General thanks the Office of the New York State Inspector General, the Office of the New York State Comptroller, and the DOCCS Inspector General’s Office for their invaluable assistance in this case. The initial investigation by the New York State Inspector General’s Office was handled by former Senior Investigative Attorney Jeffrey Hagen, now Senior Counsel in Attorney General Schneiderman’s Office.</p>
<p> The investigation was handled by Senior Investigator Sandra Migaj and Supervising Investigator Richard Doyle of the Attorney General’s Investigations Bureau. The Investigations Bureau is led by Deputy Bureau Chief Antoine Karam and Bureau Chief Dominick Zarrella.</p>
<p> The case was prosecuted by Senior Counsel Wanda Perez-Maldonado and Assistant Attorney General Yujin Hong of the Public Integrity Bureau with the assistance of Legal Analyst Morgan McCollum. The Bureau is led by Deputy Bureau Chief Stacy Aronowitz and Bureau Chief Daniel G. Cort. The Attorney General's Criminal Justice Division is led by Executive Deputy Attorney General Kelly Donovan.</p>
</div></div></div><div class="field field-name-group-audience field-type-group field-label-above"><div class="field-label">Groups audience:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/bureau/public-integrity-bureau">Public Integrity Bureau</a></div></div></div>Thu, 26 Feb 2015 18:54:26 +0000peter37991 at http://www.ag.ny.govhttp://www.ag.ny.gov/press-release/ag-schneiderman-and-ig-scott-announce-sentencing-oral-surgeon-who-stole-over-14000-new#commentsA.G. Schneiderman Announces Joint Lawsuits With Federal Trade Commission Against Abusive Debt Collectors In Buffalo Areahttp://www.ag.ny.gov/press-release/ag-schneiderman-announces-joint-lawsuits-federal-trade-commission-against-abusive-debt
<div class="field field-name-field-summary field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"><p>Companies Allegedly Engaged In Harassing, Deceptive Conduct Aimed At Consumers Across New York State And The United States</p>
</div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p>NEW YORK – Attorney General Eric T. Schneiderman today announced joint lawsuits with the Federal Trade Commission (FTC) aiming to shut down two abusive debt collection rings operating in the Buffalo area and targeting consumers nationwide. According to the complaints, the two operations used threats and abusive language, including false threats that consumers would be arrested, to collect more than $45 million in supposed debts. The lawsuits were filed against Four Star Resolution, LLC and Vantage Point Services, LLC.<p></p></p>
<p>“Today’s action should make it clear that nobody is above the law, and when shady debt collectors engage in illegal and abusive business practices, they will be held accountable,” said <strong>Attorney General Schneiderman</strong>. “The use of threats, including the threat of arrest, to collect debts is unconscionable, and I am pleased to partner with the FTC to stand up for consumers against these bad actors.”<p></p></p>
<p>“The Federal Trade Commission is pleased to work with the New York State Attorney General to stop abusive debt collectors,” said <strong>Jessica Rich, Director of the FTC’s Bureau of Consumer Protection</strong>. “The cases announced today will help protect consumers from debt collectors that disregard the law in an attempt to make a buck.”<p></p></p>
<p>The details of the two complaints are as follows:<p></p></p>
<p style="text-align: center;"><u>Vantage Point Services, LLC</u><p></p></p>
<p><a href="http://www.ag.ny.gov/pdfs/2-Complaint-Stamped.pdf" target="_blank" title="Vantage Point Complaint">According to the first complaint</a>, filed against Vantage Point Services, LLC, and related corporate and individual collaborators, the organization, based in Amherst, New York, used deceptive, unfair, and abusive tactics to pressure consumers into making payments on supposed debts.<p></p></p>
<p>The complaint alleges that in collection calls to consumers the companies often falsely claimed to be a law firm, process server, unrelated debt collection company, or entity affiliated with the government. In some instances, the company even posed as government agencies, including the FBI and district attorneys. In others instances, the company falsely told consumers they were working as an intermediary with the state, or that the state has placed the consumers’ account with them to give them a chance to pay the debt before criminal charges are filed.<p></p></p>
<p>With this deceptive backdrop, the companies falsely claimed that consumers had committed a crime and that an arrest warrant would be issued unless they made a payment. Often, the company told consumers that they would spend 90 or 120 days in jail, or that that would need to pay thousands of dollars in bail if they didn’t pay.<p></p></p>
<p>The company’s conduct was not limited to people that supposedly owed the debt, however. Vantage Point made similar representations to third parties, including supposed debtors’ friends, family members, and co-workers. In some cases, the company falsely told third parties that the supposed debtors have committed a crime and that a warrant has been issued for their arrest.<p></p></p>
<p>Finally, the complaint states that the company failed to provide consumers with basic information about their identity during calls, did not provided consumers with information about the supposed debt within five days of the call, as required by the Fair Debt Collection Practices Act (FDCPA), and illegally charged them a “processing fee.”<p></p></p>
<p>The complaint against Vantage Point Services was filed under seal in the U.S. District Court for the Western District of New York, the seal has now been lifted, and a <a href="http://www.ag.ny.gov/pdfs/Ex_Parte_TRO-Stamped.pdf" target="_blank" title="Vantage Point TRO">temporary restraining order</a> granted. The companies named in the complaint are: 1) Vantage Point Services, LLC; 2) Payment Management Solutions, Inc.; and 3) Bonified Payments Solutions, Inc.; and 4) Gregory MacKinnon; 5) Megan Vandeviver; 6) Joseph Ciffa and 7) Angela Burdorf, each individually and as an officer of one or more of the corporate entities.<p></p></p>
<p style="text-align: center;"><u>Four Star Resolution, LLC</u><p></p></p>
<p><a href="http://www.ag.ny.gov/pdfs/Complaints.pdf" target="_blank" title="Four Star Resolution Complaint">According to the second complaint</a>, filed against several entities operating as a common enterprise called Four Star Resolution, LLC, debt collectors in Buffalo, New York and elsewhere, called consumers and made a series of misrepresentations and threats to get them to pay supposed debts. If they could not reach a consumer, they typically left a message telling them about “possible litigation” pending against them, and saying the consumer has 48 hours to call back before a complaint is “formalized” with the county where they live.<p></p></p>
<p>Consumers who called back were sometimes told they were delinquent on a payday loans or other debts. Four Star’s collectors often lied to consumers, telling them they were attorneys, investigators, process servers, court officials, government agents, or even criminal law enforcers. They continued the deception by telling consumers they would be jailed, criminal legal action would be taken against them, their wages would be garnished, or their property seized if they did not pay the supposed debts. In reality, Four Star had no authority to take any of these actions.<p></p></p>
<p>The complaint cites several examples of the company’s alleged deception. During one call to collect on a supposed debt, the Four Star collector used the pseudonym “Detective Jack Ramsay,” and left a message falsely asserting he is seeking to serve a bench warrant on the consumer for “check fraud.” In another case, Four Star’s collectors falsely told a consumer that a relative had committed check fraud and that legal action would be taken against them if the debt was not paid in two days. The call was from a collector who claimed he was “Investigator Kearns,” and that he worked for “a government agency located in Washington, DC.”<p></p></p>
<p>When consumers asked for proof of the alleged debt, Four Star’s representatives refused to provide it, instead telling consumers a court would provide them with proof after the debt was paid. The complaint also alleges that during calls, the company’s collectors used fake corporate names, spoofed phone numbers on consumers’ caller-ID, failed to provide written notice of the debt as required by law, and failed to make required disclosures.<p></p></p>
<p>Finally, the complaint states the company illegally disclosed information about alleged debtors to third parties, including friends, family members, and employers, and used abusive and profane language, routinely calling consumers “idiot,” “dummy,” “piece of scum,” thief,” and “loser.”<p></p></p>
<p>The complaint against Four Star also was filed under seal in the U.S. District Court for the Western District of New York, the seal has now been lifted, and a <a href="http://www.ag.ny.gov/pdfs/Signed_TRO_without_attachments.pdf" target="_blank" title="Four Star TRO">temporary restraining order</a> granted. The companies named in the complaint are: 1) Four Star Resolution, LLC, also doing business as (d/b/a) Consumer Recovery Group, Four Star Capital Services, Four Star Resolution Services, LLC, and FS Mediation Group; 2) Profile Management, Inc.; and 3) International Recovery Service, LLC, also d/b/a Financial Mediation Group; 4) Check Solutions Services, Inc., also d/b/a County Check Services; 5) Check Fraud Services, LLC, also d/b/a Check Services and CFS &amp; Associates, Inc.; 6) Merchant Recovery Services, Inc., also d/b/a Mandatory Arbitration Services and PDL Recovery Services; 7) Fourstar Revenue Management, LLC; 8) Travell Thomas, individually and as a manager and/or officer of several of the corporate entities; 9) Maurice Sessum, individually and as a member and/or officer of several of the corporate entities; and 10) Charles Blakely, III, individually and as a member and/or officer of Merchant Recovery Services, Inc.<p></p></p>
<p>Both complaints allege that the companies violated the FTC Act and the FDCPA, as well as New York State’s fair debt collection statute and laws prohibiting deceptive acts and practices. In filing the complaints, the FTC and the State of New York are seeking to permanently stop the illegal conduct and to obtain money to provide refunds to consumers.<p></p></p>
<p>The cases are being handled by Assistant Attorney General James M. Morrissey in the Attorney General’s Buffalo Regional Office with assistance from Karen Davis, Senior Consumer Fraud Representative and bureau support staff. The Buffalo Regional office is led by Assistant Attorney General-in-Charge Michael Russo. The division of Regional Affairs is led by Executive Deputy Attorney General for Regional Affairs Marty Mack.<p></p></p>
</div></div></div><div class="field field-name-group-audience field-type-group field-label-above"><div class="field-label">Groups audience:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/bureau/consumer-frauds-bureau">Consumer Frauds and Protection Bureau</a></div><div class="field-item odd"><a href="/buffalo-regional-office">Buffalo Regional Office</a></div></div></div>Thu, 26 Feb 2015 16:05:41 +0000peter37990 at http://www.ag.ny.govhttp://www.ag.ny.gov/press-release/ag-schneiderman-announces-joint-lawsuits-federal-trade-commission-against-abusive-debt#commentsA.G. Schneiderman Secures Over $500,000 In Restitution And Title Certificates For Consumers Against Dominican Republic Real Estate Developerhttp://www.ag.ny.gov/press-release/ag-schneiderman-secures-over-500000-restitution-and-title-certificates-consumers
<div class="field field-name-field-summary field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"><p>The Consent Order And Judgment Permanently Prohibits The Respondents From Promoting, Advertising Or Otherwise Engaging In The Sale, Transfer Or Conveyance Of Residential Properties In The Dominican Republic To New York Consumers.</p>
<p>Schneiderman: This Office Will Vigorously Pursue Foreign Corporations That Engage In Unscrupulous Business Practices In New York State</p>
</div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p>NEW YORK - Attorney General Eric T. Schneiderman today announced a settlement in his lawsuit against the Dominican real estate development company Consorcio Empresarial Emproy-Divisa, S.A; Danilo Diaz, the company’s president; Julio Balbuena, the company’s sales manager; Rivas Travel and Multiservice, Inc., a New York corporation; and David Rivas, the owner of Rivas Travel, for their involvement in the sale of residential properties at a development in the Dominican Republic known as Pueblo Bavaro. The Attorney General has secured $540,499.00 for consumers who paid a down payment or in full for a residence at Pueblo Bavaro but never received it, and title certificates for dozens of defrauded consumers. A Consent Order and Judgment signed by Manhattan Supreme Court Justice Joan Kenney requires financial restitution payments to new complainants who paid a down payment or in full for a residence but never received one within 30 days of the complaint being received by the development company, and title certificates to be provided within 60 days of the complaint being received. The Consent Order and Judgment also prohibits the respondents from promoting, advertising or engaging in the sale, transfer or conveyance of properties in Dominican Republic to New York consumers.<p></p></p>
<p>“This office will continue to investigate and prosecute businesses engaging in conduct that harms New Yorkers and their families—especially immigrant communities and those in need,” said <strong>Attorney General Schneiderman</strong>. “New Yorkers must have confidence when interacting with foreign corporations that do business in this state. And those corporations that break laws and then leave the state or country will not escape our reach—we will come down on them with the full force of the law.”<p></p></p>
<p>Emproy-Divisa operated in New York from Rivas Travel located at 4321 Broadway, New York, NY, from at least 2005 through 2008, soliciting New York consumers with a focus on Washington Heights residents. Respondents also advertised Pueblo Bavaro on the Spanish language television station, Telemundo. Respondents systematically failed to provide title to consumers who purchased a residence at Pueblo Bavaro, or failed to provide a residence for consumers who signed a purchase agreement and paid a down payment and/or secured a mortgage.<p></p></p>
<p>“I commend Attorney General Eric Schneiderman for being responsive to the complaints of my constituents and investigating the conduct of Consorcio Empresarial Emproy-Divisa,” said<strong> State Senator Adriano Espaillat (D-Manhattan/Bronx)</strong>. “The over $500,000 in restitution recovered by the Attorney General sends a clear message to foreign companies, if they attempt to scam New Yorkers they will be prosecuted and held accountable for their actions.”<p></p></p>
<p>"Bad actors taking advantage of our community, whether domestic or international, must be held accountable to the law," said <strong>New York City Councilmember Ydanis Rodriguez</strong>. "I applaud Attorney General Schneiderman's leadership in bringing relief to the many constituents defrauded by those responsible for this misconduct."<p></p></p>
<p>The Attorney General alleged violations of GBL sections 349 and 350, which prohibit deceptive conduct and false advertising, respectively. Moreover, the lawsuit alleged that Emproy Divisa conducted business in New York State without the required filing with the New York State Department of State of an application for authority in violation of New York’s Business Corporations Law sections 1301 and 1305. Additionally, several promised services such as security were not provided; several complainants found squatters residing in their residence or furniture, appliances and other items missing from their residence. Several complainants indicated that they were due rental payments.<p></p></p>
<p>Eighty-six complaints have been filed with the Attorney General’s office seeking financial restitution, title or both. Since the filing of the lawsuit in November, all 29 of the complainants who paid a down payment or paid in full but were never provided their residence have received a reimbursement of their payment, totaling $540,499.00 Forty consumers who never received title certificates have been provided their titles. The remaining 15 complainants who are owed title certificates must receive them within 60 days in accordance with the Consent Order and Judgment. The remaining 16 complainants who are owed title certificates must receive them within 60 days of the Court’s signing the Consent Order and Judgment.<p></p></p>
<p>“I am grateful to the Attorney General’s office for assisting me in finally getting my $30,000 investment in Pueblo Bavaro returned to me," said <strong>Maria Paulino, a Northern Manhattan resident.</strong> "I made the payment in 2008 and was promised a residence but never received it. I had been inquiring about my residence since 2009 and seeking a refund for my payment during the past several years. I didn’t think it would happen but I’m grateful to finally get it back.”<p></p></p>
<p>“I paid $22,500 for a residence at Pueblo Bavaro in 2007. I had a dream of a residence in the Dominican Republic and it turned into a nightmare. I never received my residence and I began to believe I’d never see my money again. I am very appreciative of the work of the Attorney General in securing the return of my payment.” Eddy Tejada, Northern Manhattan resident.<p></p></p>
<p>“I purchased my residence at Pueblo Bavaro in 2004 after seeing a promotional event at La Mirage Restaurant in Northern Manhattan. I tried contacting Emproy Divisa countless times to try to secure my title but was consistently given the run-around. I finally received my title ten years after signing a contract and paying for the apartment thanks to the intervention of the Attorney General,” said<strong> David Morfe, a New Jersey resident.</strong><p></p></p>
<p>The Consent Order and Judgment permanently prohibits the Respondents from promoting, advertising or otherwise engaging in the sale, transfer or conveyance of residential properties in the Dominican Republic to New York consumers. The Consent Order and Judgment further provides a 30 day period for new additional complaints to be registered with the Attorney General’s office and requires financial restitution payments for new complainants to be made within 30 days and title certificates delivered within 60 days from the date the complaints are delivered by the Attorney General’s office to Emproy-Divisa.<p></p></p>
<p>David Rivas and his company Rivas Travel and Multiservices have collectively paid a $25,000.00 penalty and $2,000.00 in costs, and Emproy Divisa has also paid $25,000.00 in penalties and $2,000.00 in costs. If Emproy-Divisa fails to comply with any terms of the order, a $50,000.00 suspended penalty may default.<p></p></p>
<p>New complaints can be registered with the Attorney General’s Harlem Regional office located at 163 West 125th Street, Suite 1324, New York, New York 10027; consumers can call (212) 961-4475 for further information.<p></p></p>
<p>This case was handled by Assistant Attorney General Roberto G. Lebron, former Assistant Attorney General in Charge of the Harlem Regional Office Guy Mitchell, Consumer Fraud and Protection Bureau Chief Jane Azia and Executive Deputy Attorney General for Regional Offices Martin Mack, with the assistance of bureau support staff. Investigator Edward Ortiz of the Attorney General’s Investigation Bureau also assisted in the investigation.<p></p></p>
</div></div></div><div class="field field-name-group-audience field-type-group field-label-above"><div class="field-label">Groups audience:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/bureau/consumer-frauds-bureau">Consumer Frauds and Protection Bureau</a></div><div class="field-item odd"><a href="/harlem-regional-office">Harlem Regional Office</a></div></div></div>Thu, 26 Feb 2015 15:13:44 +0000peter37989 at http://www.ag.ny.govhttp://www.ag.ny.gov/press-release/ag-schneiderman-secures-over-500000-restitution-and-title-certificates-consumers#commentsA.G. Schneiderman Proposes Bill To Reward And Protect Whistleblowers Who Report Financial Crimeshttp://www.ag.ny.gov/press-release/ag-schneiderman-proposes-bill-reward-and-protect-whistleblowers-who-report-financial
<div class="field field-name-field-summary field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"><p>Financial Frauds Whistleblower Act Would Provide Monetary Incentive To Employees With Information About Financial Misconduct; Protect Against Retaliation By Employers</p>
<p>Schneiderman: New York Has A Unique Opportunity To Set The Gold Standard For States Seeking To Expose And Hold Individuals Accountable For Financial Crimes</p>
</div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p>NEW YORK—Attorney General Eric T. Schneiderman announced today that he would propose legislation in Albany to protect and reward employees who report information about illegal activity in the banking, insurance, and financial services industries. Currently, no law exists in New York State to protect or incentivize whistleblowers who report securities and other financial frauds. Attorney General Schneiderman’s bill – the Financial Frauds Whistleblower Act – would provide financial compensation to whistleblowers who voluntarily report fraud in their industry, and whose tips lead to more than $1 million in penalties or settlement proceeds. The bill would also guarantee the confidentiality of the whistleblower’s information, and make it illegal for any employer to retaliate in response. The rewards paid to whistleblowers will be drawn from monetary recoveries paid by those who commit wrongdoing, and not out of state funds, making this a cost-free way to increase the government’s ability to detect frauds and obtain recoveries.</p>
<p>“From holding the banks accountable for the collapse of the housing market, to taking on unfair advantages for high-frequency traders, this office has committed to promoting fairness and a level playing field for all investors. And yet, a valuable tool for building these cases is rarely at our disposal,” said <strong>Attorney General Schneiderman.</strong> “New York has a unique opportunity to set the gold standard for states seeking to expose and hold individuals accountable for financial crimes. This law will be the strongest, most comprehensive in the nation, and is long overdue for a state with the world’s most important financial markets.”</p>
<p>Providing incentives and protections for people to report financial frauds to the Attorney General is essential for detecting and prosecuting a wide array of financial frauds. Monetary rewards and anti-retaliation protections for whistleblowers will help authorities find and stop large financial frauds against the public, and minimize the damage caused by ongoing frauds to individuals, companies and the government.</p>
<p>In 2010, the New York State False Claims Act was amended to include incentives and protections for whistleblowers who report abuses of taxpayer funded state expenditures. Since then, financial recoveries in cases brought to the office’s Taxpayer Protection Bureau by whistleblowers have paid out 80% more than cases that originated from other investigative means within the same Bureau.</p>
<p>While New York State law gives the Attorney General broad powers through the Martin Act, it does not provide direct monetary incentives for industry insiders to come forward and aid in investigations. The Financial Fraud Whistleblower Act will, for the first time, enable New York State to provide financial compensation to whistleblowers who voluntarily report fraud in the banking, securities, insurance, and financial services industries, and provide whistleblowers with explicit legal protection from retaliation by current or prospective employers.</p>
<p>Among other provisions, the Attorney General’s bill would do the following:</p>
<ul><li>Provide monetary rewards to individuals who voluntarily provide original information, not previously known to the Attorney General, which leads to monetary sanctions for financial fraud or misconduct in the securities industry. Whistleblowers would receive 10-30 percent of the money obtained in a securities fraud case.</li>
<li>Preserve the confidentiality of the whistleblower.</li>
<li>Create a Financial Services Whistleblower Awards program within the state’s Department of Financial Services to reward whistleblowers for tips to that agency.</li>
<li>Strengthen existing labor protections to make it explicitly unlawful for employers to discharge, demote, suspend, or otherwise harass employees who report suspicious or fraudulent activity to supervisory or internal compliance staff.</li>
</ul></div></div></div><div class="field field-name-group-audience field-type-group field-label-above"><div class="field-label">Groups audience:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/bureau/investor-protection-bureau">Investor Protection Bureau</a></div></div></div>Thu, 26 Feb 2015 14:23:31 +0000peter37988 at http://www.ag.ny.govhttp://www.ag.ny.gov/press-release/ag-schneiderman-proposes-bill-reward-and-protect-whistleblowers-who-report-financial#commentsA.G. Schneiderman Announces Settlement Requiring Developer That Operated Illegal Hotel To Pay Back Nearly $4.5 Million In Improper Tax Benefits http://www.ag.ny.gov/press-release/ag-schneiderman-announces-settlement-requiring-developer-operated-illegal-hotel-pay
<div class="field field-name-field-summary field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"><p>Manhattan Developer Received Tax Exemptions Under 421-A Program While Operating Building as an Illegal Extended-Stay Hotel</p>
<p>Deal Requires Developer to Return All Residential Units to Rent Stabilization, Repay $4,446,153 in Tax Benefits to City and $275,000 in Costs to State</p>
<p>Schneiderman: My Office is Working to Enforce the Prerequisites for 421-a Tax Exemptions</p>
</div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p>NEW YORK – Attorney General Eric T. Schneiderman today announced that his office has reached a settlement with 47 East 34th Street (NY), LP, the owners of an apartment building located at 47 East 34th Street in Manhattan, to repay $4,446,153 in unpaid taxes due to the City under Section 421-a of the New York Real Property Tax Law and convert all 110 units of the building to rent-stabilized units. Prior to the Attorney General’s investigation, the building was operating as an illegal extended-stay hotel, which is not permitted under 421-a rules. The settlement brings the building into compliance with New York City’s 421-a program and ensures that tenants will receive rent-stabilized leases for the first time ever.<p></p></p>
<p>“I will not allow the 421-a tax exemption to line the pockets of the rich and powerful,” <strong>Attorney General Schneiderman </strong>said. “The 421-a program provides massive tax benefits to developers in exchange for permanent housing development, and I will continue to make sure that the prerequisites for receiving those benefits are enforced. I am pleased that this company has agreed to do the right thing by paying the City back taxes and offering more than 100 rent-stabilized leases to New Yorkers. My office will continue to crack down on illegal development that exacerbates the City’s severe affordable housing shortage.”<p></p></p>
<p>“The Attorney General’s aggressive action here is deeply appreciated,” said <strong>New York City Mayor Bill de Blasio</strong>. “We must protect the affordable housing we have, and ensure the resources we spend maximize the number of new affordable homes for New Yorkers in need. We won’t tolerate this kind of abuse.”<p></p></p>
<p>“I thank the Attorney General for his diligence on this case and for his continued partnership in our mission to protect the city’s housing stock and tenants,” said<strong> New York City Housing and Preservation Development (HPD) Commissioner Vicki Been</strong>. “Today’s announcement sends a clear message that building owners must comply with their legal obligations and will be held accountable when they fail to do so. This settlement will ensure that millions of dollars are recovered and put to good use funding affordable housing.”<p></p></p>
<p>"It is unacceptable for a landlord to turn a tax-exempted affordable housing unit into a short term rental that commands higher profit margins,” said <strong>New York City Public Advocate Letitia James</strong>. “There is dire lack of affordable housing in New York City – tonight over 50,000 New Yorkers will have no place to call home. Meanwhile, building owners like this are unlawfully converting much-need affordable units into lucrative short-term businesses. I commend Attorney General Schneiderman for today's settlement and his ongoing work to return affordable housing to New Yorkers.”<p></p></p>
<p>“Taxpayers deserve to know that their hard-earned dollars are being spent to promote affordable housing, not line the pockets of illegal hoteliers,” said N<strong>ew York City Comptroller Scott Stringer</strong>. “The settlement announced today by Attorney General Schneiderman will ensure that tax exemptions truly support that effort.”<p></p></p>
<p>“The tax benefits provided under the 421-a program are tied to the creation of new housing units for permanent residents, which our city sorely needs,” said Manhattan Borough President Gale A. Brewer. “When developers or landlords reap the reward of a massive 421-a tax break without providing housing units for actual permanent residents, they need to know they will be held accountable. I applaud Attorney General Schneiderman for sending that message today, loud and clear.”<p></p></p>
<p>“I am very pleased that Attorney General Schneiderman is taking on abuses in the 421-a program, which costs New York City over $1 billion each year while creating very little affordable housing,” said <strong>New York State Senator Elizabeth Krueger</strong>. “It is particularly egregious when a developer receives tax breaks meant for permanent housing for New Yorkers and uses them to operate an extended-stay hotel, lining his pockets at taxpayer expense. Today’s example should be kept in mind when the Legislature considers reforms to the 421a program later this year.”<p></p></p>
<p>“Thank you, Attorney General Eric Schneiderman, for the investigation and pursuit of the owners of 47 East 34th Street,” said<strong> New York State Assemblymember Richard Gottfried</strong>. “Not only have these unscrupulous landlords illegally violated the tax law by fraudulently using a 421-a tax exemption, an incentive program which was created to help owners to build affordable housing, but they then used this building as an illegal hotel, a clear violation of the rent stabilization laws. Forcing these owners to pay a $4.5 million financial settlement and giving the tenants rent-stabilized leases is a great victory for all New Yorkers. We must double our efforts to end the abuses of 421-a and the proliferation of illegal hotels by passing stronger housing laws and by increasing enforcement and the penalties for violations of these laws.”<p></p></p>
<p>“If 421-a tax benefits are given, it is essential, at a minimum, that tenants actually receive rent regulation status,” said <strong>Adriene Holder, attorney-in-charge in the Civil Practice Unit of The Legal Aid Society</strong>. “Thanks to the leadership of the Attorney General in uncovering this landlord fraud, tenants will be protected going forward and the tax benefits will be repaid.”<p></p></p>
<p>Section 421-a of the New York Real Property Tax Law grants valuable local property tax exemptions on certain new multi-family buildings. In order to qualify, Section 421-a requires that any project receiving the tax exemption be subject to local rent stabilization laws and in some cases requires them to either set aside a number of affordable housing units or pay service staff prevailing wages. Buildings that are owned as either a condominium or a cooperative are exempt from the rent regulation requirement. Buildings that are operated as hotels are not eligible for benefits under the 421-a program.<p></p></p>
<p>In the wake of the economic crisis of 2008 and its impact on the real estate market, the Attorney General has discovered that many sponsors of new condominium buildings chose to ride out the storm by illegally changing the use of their buildings from condominium to rental, or by converting to a hostel or hotel, while continuing to receive benefits under the 421-a program and failing to provide rent-stabilized leases, affordable units, and prevailing wages.<p></p></p>
<p>The Attorney General’s Office uncovered that 47 East 34th Street was one of the many buildings improperly receiving the 421-a tax exemption despite being out of compliance – operating as an extended-stay hotel instead of as a condominium or rental project.<p></p></p>
<p>Under the settlement obtained by Attorney General Schneiderman, the company will make required filings with the City’s Department of Housing Preservation and Development and the State’s Division of Housing &amp; Community Renewal, and will convert the use of the building to a rent-stabilized apartment building. In addition, they have agreed to pay $4,446,153, to a special fund to help finance affordable housing for low-income New Yorkers. They will also pay the State of New York $275,000 to cover the costs of the Attorney General’s investigation.<p></p></p>
<p>This settlement is the most recent in a series of settlements the Attorney General has obtained in his ongoing investigation of properties receiving benefits under the 421-a program. Prior settlements have included repayments of tax benefits as well as restitution and remedies for building workers and tenants. Further information on those settlements can be found <a href="http://links.govdelivery.com:80/track?type=click&amp;enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTUwMjI2LjQyMTI0OTQxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE1MDIyNi40MjEyNDk0MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3Mzk1MzkzJmVtYWlsaWQ9cGV0ZXIuY29jaGV0dGlAYWcubnkuZ292JnVzZXJpZD1wZXRlci5jb2NoZXR0aUBhZy5ueS5nb3YmZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&amp;&amp;&amp;100&amp;&amp;&amp;http://ag.ny.gov/press-release/ag-schneiderman-announces-agreements-nyc-building-owners-return-more-460000-back-wages" target="_blank" title="Past Settlements">here.</a><p></p></p>
<p>The Attorney General thanks the New York State Division of Housing &amp; Community Renewal and New York City Department of Housing Preservation and Development for their assistance on this matter.<p></p></p>
<p>The investigation of this matter was conducted by Assistant Attorneys General Elissa Rossi and Nicholas J. Minella, Deputy Chief Andrew H. Meier, Special Counsel Jeffrey R. Rendin and Bureau Chief Erica F. Buckley, all of the Real Estate Finance Bureau, as well as Executive Deputy Attorney General for Economic Justice Karla G. Sanchez.<p></p></p>
<p>A copy of today's agreement can be read <a href="http://links.govdelivery.com:80/track?type=click&amp;enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTUwMjI2LjQyMTI0OTQxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE1MDIyNi40MjEyNDk0MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE3Mzk1MzkzJmVtYWlsaWQ9cGV0ZXIuY29jaGV0dGlAYWcubnkuZ292JnVzZXJpZD1wZXRlci5jb2NoZXR0aUBhZy5ueS5nb3YmZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&amp;&amp;&amp;101&amp;&amp;&amp;http://ag.ny.gov/pdfs/421-a%20AOD.pdf" target="_blank" title="AOD">here</a>.<p></p></p>
</div></div></div><div class="field field-name-group-audience field-type-group field-label-above"><div class="field-label">Groups audience:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/bureau/real-estate-finance-bureau">Real Estate Finance Bureau</a></div></div></div>Thu, 26 Feb 2015 12:49:14 +0000peter37987 at http://www.ag.ny.govhttp://www.ag.ny.gov/press-release/ag-schneiderman-announces-settlement-requiring-developer-operated-illegal-hotel-pay#commentsA.G. Schneiderman Announces $800,000 Settlement With Bronx Nonprofit That Diverted Money Intended For Services For Elderlyhttp://www.ag.ny.gov/press-release/ag-schneiderman-announces-800000-settlement-bronx-nonprofit-diverted-money-intended
<div class="field field-name-field-summary field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"><p>Regional Aid For Interim Needs (RAIN) Illegally Used Funds To Make Mortgage Payments On The Nonprofit’s Vacant Headquarters</p>
<p>Schneiderman: Nonprofit Organizations Are Not The Personal Piggy Banks Of Their Management</p>
</div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p>NEW YORK – Attorney General Eric T. Schneiderman today announced a settlement with nonprofit Regional Aid for Interim Needs, Inc., (RAIN) for diverting $800,000 in Medicaid funds to make mortgage payments on the agency’s administrative headquarters, in violation of the organization’s funding agreements with the NYC Human Resource Administration. RAIN provides home attendant services to elderly residents in the Bronx, including 11 senior centers, a Meals-on-Wheels program, two social service programs and three seniors housing complexes for the elderly.</p>
<p>“Nonprofits cannot be used as the personal piggy banks of their management,” <strong>Attorney General Schneiderman</strong> said. “This organization wrongly diverted taxpayer dollars meant to help the elderly to pay off a mortgage on a vacant building. My office will ensure state funds that are directed to provide important services to New York’s most vulnerable are used as intended.”</p>
<p>The Attorney General’s investigation found that, from 2003 to 2008, RAIN’s former Executive Director Louis Vazquez used nearly $800,000 in funds intended for the nonprofit’s home attendant service affiliate, RAIN HAS, in order to make mortgage payments on the agency’s administrative headquarters, at 811 Morris Park Avenue. At the time, the building was vacant and under construction. The diversion of Medicaid funds was in violation of RAIN HAS’s funding agreements with the NYC Human Resource Administration, which oversees the Medicaid funding that the city receives from the federal government and the New York State Department of Health.</p>
<p>Under today’s settlement, RAIN is required to repay the illegally diverted $800,000 back to the Medicaid program.</p>
<p>The Attorney General’s investigation also found that Vazquez inappropriately charged thousands of dollars of personal expenses to RAIN’s American Express card. A separate investigation initiated by the New York City Department of Investigation (DOI) resulted in the New York City Mayor’s Office of Contracts requiring the reconstitution of RAIN’s Board of Directors, the implementation of various internal controls and governance reforms. On September 30, 2013, in light of the findings of the Attorney General’s investigation, RAIN’s Board of Directors accepted Vasquez’s resignation. Under the settlement, the board is required to recover the money paid toward Vazquez’s personal charges.</p>
<p>The Attorney General would like to thank the New York City Department of Investigation for referring this matter to the Office and for its assistance in conducting the Investigation. The Attorney General would also like to thank the New York City Mayor’s Office of Contracts and the New York City Human Resource Administration for their assistance.</p>
<p>Forensic audit work was performed by Theresa White, Supervising Auditor and Milan Shah, Associate Special Auditor. The investigation was conducted by Special Assistant Attorney General Sally G. Blinken of the Medicaid Fraud Control Unit. The Medicaid Fraud Control Unit is led by Acting Director Amy Held. The Criminal Justice Division is led by Executive Deputy Attorney General Kelly Donovan.</p>
</div></div></div><div class="field field-name-group-audience field-type-group field-label-above"><div class="field-label">Groups audience:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/bureau/medicaid-fraud-control-unit">Medicaid Fraud Control Unit</a></div></div></div><ul class="links inline"><li class="translation_es first last"><a href="/node/37986" title="Schneiderman Anuncia $800,000 Acuerdo Con Entidad Sin Fines De Lucro De El Bronx Que Desvió Dinero Destinado A Servicios Para Personas Mayores" class="translation-link">Español</a></li>
</ul>Wed, 25 Feb 2015 19:19:34 +0000Revathi37985 at http://www.ag.ny.govhttp://www.ag.ny.gov/press-release/ag-schneiderman-announces-800000-settlement-bronx-nonprofit-diverted-money-intended#commentsA.G. Schneiderman Announces Conviction Of New Jersey Broker Arrested In $1 Million Securities Fraud Casehttp://www.ag.ny.gov/press-release/ag-schneiderman-announces-conviction-new-jersey-broker-arrested-1-million-securities
<div class="field field-name-field-summary field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"><p>After His Arrest Just Two Weeks Ago, Khawaja Saud Masud Pleads Guilty To Fraudulently Soliciting His Relatives To Invest In His Purported Hedge Fund</p>
<p>Schniederman: My Office Will Hold Brokers Who Commit Securities Fraud Accountable</p>
</div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p>WESTCHESTER - Attorney General Eric T. Schneiderman announced the felony conviction of Khawaja Saud Masud, 37, of Jersey City, NJ, for stealing over $1 million from his great-uncle and great-aunt by fraudulently soliciting them to invest in his purported hedge fund, RKS Capital, LP. Today, just two weeks after being charged by the Attorney General’s Office, Masud pleaded guilty to Grand Larceny in the Fourth Degree and Securities Fraud under the Martin Act, both Class E felonies. In exchange for his plea, Masud must pay a total of $500,000 in restitution. As a result of his conviction, Masud also faces deportation.</p>
<p>“The defendant convinced his own relatives to turn over their retirement savings with promises of a safe, lucrative investment. Instead, he squandered away their money with a risky strategy that could only benefit himself,” said <strong>Attorney General Schneiderman.</strong> “My office will pursue justice from brokers who fraudulently solicit investors and commit securities fraud.”</p>
<p>Masud was <a href="/press-release/ag-schneiderman-announces-arrest-and-indictment-new-jersey-broker-1-million-securities" target="_blank" title="Arrest">charged</a> by the Attorney General’s Office on February 13, 2015 with Grand Larceny in the Second Degree, a Class B felony, and Securities Fraud under the Martin Act. According to the indictment and statements made by prosecutors, Masud induced his relatives, Dr. Kalim Irfani, a 75-year old retired pediatrician, and his wife, Rehana Irfani, of Westchester, to invest with him by falsely representing that his purported hedge fund RKS Capital, LP was a far safer investment than a mutual fund. Instead, Masud engaged in a highly speculative and aggressive investment strategy, trading stocks multiple times a day without his relative’s knowledge or permission, suffering staggering losses.</p>
<p>As part of his guilty plea, entered today before the Honorable Justice Robert A. Neary in Westchester County Court, Masud admitted to making multiple false representations to the Irfanis to convince them to invest, including that he would safely invest their money, that he would preserve their $1 million investment, and that their investments would be transparent and monitored by an independent third-party administrator.</p>
<p>Masud further admitted that contrary to his representations to the Irfanis, he invested their money in a manner that he knew was unsafe and would not preserve their investment, and that he cancelled the services of the fund administrator who was responsible for sending monthly statements to the Irfanis. Masud admitted that he instead engaged in a risky trading strategy that was intended to benefit himself, and that as a result of his actions, he lost over $900,000 of the Irfanis’ investment in just three months.</p>
<p>Masud, who already repaid approximately $200,000 to the Irfanis, must pay an additional $300,000 in restitution to the Irfanis as a condition of his plea. As a result of his conviction in this case, Masud, who is not a United States citizen, now faces deportation to his native county of Pakistan.</p>
<p>According to <a href="http://smagllc.com/about.php" target="_blank" title="Website">his website</a>, Masud is a “top ranked analyst” and “frequently appears as a TV guest” on CNBC, Bloomberg and CNN.</p>
<p>Masud is scheduled to be sentenced on March 4, 2015.</p>
<p>The Attorney General thanks the Financial Industry Regulatory Authority (FINRA) and, in particular, its Criminal Prosecution Assistance Group for their valuable assistance on this case. The Attorney General also thanks the U.S. Customs and Border Protection, the Port Authority of New York and New Jersey Police Department for their assistance on this case.</p>
<p>This investigation originated with a complaint filed with the Attorney General’s Investor Protection Bureau. The investigation was conducted by Investigator Ryan Fannon under the direction of Supervising Investigator John Sullivan and Deputy Chief John McManus. The Investigations Bureau is led by Chief Dominick Zarrella.</p>
<p>The case is being handled by Assistant Attorney General Gabriel Tapalaga of the Criminal Enforcement and Financial Crimes Bureau and John R. Spagna, Special Counsel to the Criminal Division, with the assistance of Legal Analyst Natasha Butalia. The Criminal Enforcement and Financial Crimes Bureau is led by Bureau Chief Gary T. Fishman and Deputy Bureau Chiefs Stephanie Swenton and Meryl Lutsky. The Division of Criminal Justice is led by Executive Deputy Attorney General Kelly Donovan.</p>
</div></div></div><div class="field field-name-group-audience field-type-group field-label-above"><div class="field-label">Groups audience:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/bureau/criminal-enforcement-and-financial-crimes-bureau">Criminal Enforcement and Financial Crimes Bureau</a></div></div></div>Wed, 25 Feb 2015 17:01:42 +0000Revathi37984 at http://www.ag.ny.govhttp://www.ag.ny.gov/press-release/ag-schneiderman-announces-conviction-new-jersey-broker-arrested-1-million-securities#commentsA.G. Schneiderman Urges Supreme Court To Uphold Protections For Job Applicants From Religious Discriminationhttp://www.ag.ny.gov/press-release/ag-schneiderman-urges-supreme-court-uphold-protections-job-applicants-religious
<div class="field field-name-field-summary field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"><p>Schneiderman: We Must Combat Religious Discrimination, Foster &amp; Promote Tolerance</p>
</div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p>NEW YORK – Attorney General Eric. T. Schneiderman issued the following statement today in advance of arguments before the United States Supreme Court in the matter of Equal Employment Opportunity Commission v. Abercrombie and Fitch Stores, Inc. In a brief amicus curiae filed with 8 other states, Attorney General Schneiderman urges the Court to recognize that Title VII of the Civil Rights Act of 1964 protects job applicants and employees from discrimination on the basis of religion. </p>
<p>“Our nation’s rich history of religious diversity is based on the Bill of Rights and enshrined by laws that protect New Yorkers’ right to freely practice their faith,”<strong>Attorney General Schneiderman</strong> said. “Title VII of the Civil Rights Act provides essential protection against employment discrimination on the basis of religion. As religious diversity across our country grows, these protections become even more important. I have asked the Court to recognize the ongoing necessity of protections for religious minorities in the workplace.”</p>
<p>Attorney General Schneiderman, along with eight other attorneys general, joined an amicus brief submitted by Arizona Attorney General Thomas C. Horne in the case of Equal Employment Opportunity Commission v. Abercrombie and Fitch, Inc. Other states that joined the brief include Hawaii, Illinois, Maryland, Montana, New Hampshire, Oregon, and Washington.</p>
<p>In 2012, Attorney General Schneiderman launched the Religious Rights Initiative, which is dedicated to addressing religious discrimination claims and ensuring that anti-discrimination laws are aggressively enforced. The Initiative has been particularly focused on protecting the religious rights of employees in the workplace and ensuring compliance with federal and state laws that require that employers accommodate the sincere religious beliefs or practices of employees and job applicants unless doing so would pose an undue hardship on the business.</p>
<p>In this case, the question before the court concerns whether Title VII’s protections are only invoked when a job applicant or employee explicitly informs an employer that his or her dress or grooming practice is religiously motivated, and formally requests that the employer provide an accommodation.</p>
<p>Specifically, a Muslim applicant for a stockroom position at an Abercrombie store in Tulsa, Oklahoma was denied employment on account of her hijab. Abercrombie concluded that such religious headwear would conflict with the store’s “look” policy. The Tenth Circuit ultimately decided in favor of Abercrombie on the grounds that the applicant had not explicitly informed Abercrombie of the potential conflict with the company’s policies, and that “employment applicants are not entitled to a religious accommodation unless they inform the employer that their religious beliefs conflict with the employer’s policies, regardless of whether they have knowledge of the employer’s policies.” </p>
<p>The amicus brief argues that the inflexible Tenth Circuit standard is improper under Title VII of the Civil Rights Act, and that “where an employer has superior knowledge of a potential conflict between an applicant’s religious beliefs and its own undisclosed policies that will be used to screen an applicant during hiring, an employer should engage in an interactive dialogue with the applicant about whether a reasonable accommodation is possible.” The brief explains: “By not mentioning the possible conflict and then not hiring the applicant because of it, employers can affirmatively avoid their Title VII obligations to provide a religious accommodation.”</p>
<p>The brief is available <a href="/pdfs/14-86_Amici_Brief_Arizona.pdf" target="_blank" title="Brief">here</a>.</p>
<p>The New York State Attorney General’s Office is committed to combating discrimination on the basis of religion and promoting the religious rights of employees in the workplace. To file a complaint, contact the Attorney General’s Civil Rights Bureau at <a href="mailto:Civil.Rights@ag.ny.gov">Civil.Rights@ag.ny.gov</a> or 212-416-8250.</p>
</div></div></div><div class="field field-name-group-audience field-type-group field-label-above"><div class="field-label">Groups audience:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/bureau/appeals-opinions-division">Appeals &amp; Opinions Division</a></div><div class="field-item odd"><a href="/bureau/civil-rights">Civil Rights</a></div></div></div>Wed, 25 Feb 2015 14:20:44 +0000Revathi37983 at http://www.ag.ny.govhttp://www.ag.ny.gov/press-release/ag-schneiderman-urges-supreme-court-uphold-protections-job-applicants-religious#comments